Zomato Reports Strong Q4 with Rs 175 Crore Consolidated Net Profit

The company posted its total expenses at Rs 2,431 crore in the corresponding period a year ago, it said.For the fiscal ended on March 31, 2024, the consolidated net profit was Rs 351 crore.

Online food delivery firm Zomato Ltd on Monday reported a consolidated net profit of Rs 175 crore in the March quarter on the back of higher revenue.

The company had posted a consolidated net loss of Rs 188 crore in the same quarter last fiscal, Zomato Ltd said in a regulatory filing.

Consolidated revenue from operations stood at Rs 3,562 crore. It was Rs 2,056 crore in the year-ago period, it added.

Total expenses were at Rs 3,636 crore. The company posted its total expenses at Rs 2,431 crore in the corresponding period a year ago, it said.

For the fiscal ended on March 31, 2024, the consolidated net profit was Rs 351 crore. It had posted a consolidated net loss of Rs 971 crore in the previous fiscal ended on March 31, 2023, the filing said.

In FY24, consolidated revenue from operations stood at Rs 12,114 crore. It was at Rs 7,079 crore.

The results for the year ended March 31, 2024, are not comparable with the year ended March 31, 2023, due to the acquisition of Blink Commerce Pvt Ltd (formerly known as Grofers India Pvt Ltd) in June 2022, the filing said.

Zomato said its margin expansion continues in both food delivery and quick commerce. The quick commerce business, Blinkit, reached an adjusted EBITDA break-even mark for the month of March 2024.

The company said a rapid store expansion is underway in the quick commerce business and it is aiming for 1,000 stores by March 2025.

In a letter to shareholders, Zomato Managing Director & CEO Deepinder Goyal said the food delivery GOV (gross order value) growth continues to be strong at 28 per cent year-on-year despite the softness in the overall restaurant industry due to the ''convenience and predictability layer'' that Zomato has built on top of the services offered by restaurants.

''We believe that we can continue to grow faster than the overall restaurant industry (and therefore power a significant part of the growth of the restaurant industry) if we continue to innovate using our customer-first principles, while creating value for all our other stakeholders our restaurant partners, and our delivery partners,'' he added.

On Blinkit, which has become a larger shareholder value driver than the food delivery business in less than two years after the acquisition, Goyal said, ''...the bet that we took on Blinkit worked out just fine...'' He said the company's focus is on the four business verticals of food delivery (Zomato), Blinkit, Hyperpure (B2B) and Going-out, and it is not looking at other new areas at the moment.

Blinkit Founder & CEO Albinder Dhindsa said, ''One of the key vectors for growth for us right now is store expansion. In Q4FY24, we added 75 net new stores taking our total store count to 526.'' In the Q1FY25, Blinkit expects to add another 100 stores, Dhindsa said, adding, ''at this point, we are aiming to get to 1,000 stores by the end of FY25''.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)